PETROLUEM TECHNOLOGY POWER

PETROMAX BUSINESS OPPERTUNITY FOR THE METAL INDUSTRY. GENERAL INFORMATION. Petromax is proud to offer this unique business oppertunity to potential agents. The metal industry is the backbone of most countries in the world and South Africa is no different. The industry is worth billions of rands per annum and covers most industries from mining to scrap metal dealers. The use of cutting torches is however not limited to the metal industry but to various other companies that make use of metal and/or machinery. The product offers a great opportunity in a market that is untapped with the petrol steel cutting systems. This means no competition from others in the market place using the same product. The only competition is companies offering more expensive ways to cut steel. In an economy that is cash strapped the products timing is excellent as it reduces the operating cost of companies using gas of up to 90%. Keeping in mind that the prospective client does not have to sacrifice safety, productivity, and production time in making the switch to using petrol instead of gas. The product also provides a great return on investment, in some instances within 2 weeks of purchase. Users of cutting torches are engineering companies, demolition, mining companies, scrap metal dealers, construction companies, chemical companies, shipping companies and farmers to name a few. Other area of business opportunity besides selling torches to the industry is the rental industry. There are currently no companies in South Africa that offers the service of hiring out a complete cutting system for steel. This is due to the expensive systems of gas and others and due to the excessive weight. Up to 250kg for a full gas system which makes it very difficult for one man to transport. Our full system weighs 12kg and will fit in a small cars boot still delivering industrial strength of up to 300mm cutting thickness. The metal industry has been serviced by Affrox in South Africa for more than 100 years. Although there are various different methods of cutting steel as opposed to Acetylene and LPG gas these two gasses are still the most widely used. The industry is largely monopolized by Affrox with a few smaller companies servicing the industry on the side.

Petrol steel cutting systems have been in use since 1940 with its origination in the USA. Petromax has entered the market with the vision of providing an alternative fuel to cut steel as opposed to using acetylene or LPG gas. Gas is expensive and inherently dangerous to use. Companies also regularly run out of gas as the suppliers have supply problems from time to time. This results in loss of production. The industry has a gap in the market for the hiring of cutting torch systems. Petromax have a holistic approach to all the down sides of using gas. We offer the solution to the following aspects of using gas: 1. 2. 3. 4. 5. Cost of cutting steel. Availability Safety Productivity. Product Transport

The cost of using petrol as opposed to using acetylene produces a huge saving to customers. The proven savings can be as high as 90%. 7 to 8 litres of normal pump fuel provides the same productivity as 1 bottle of acetylene which can cost anything up to R1000 including the rental of the bottle from Affrox. The saving against LPG gas is normally 50% but which will exclude a saving on oxygen usage of 40%. The availability of petrol has its obvious advantages as it is freely available throughout South Africa. The supply of gas on the other hand has continuous problems as can be learned by speaking to users in the industry. Clients regularly lose production/income when gas is not available to continue projects.

The safety aspects of the Petromax cutting system have been proven. Although gas is safely used most of the time it still remains a dangerous product to use. Gas is highly flammable and will ignite/explode at 300 degrees Celsius. Petrol will only ignite spontaneously at 520 degrees which gives it almost double the safety margin of gas. Gas cylinders are known to explode with dire consequences whereas the Petromax cutting system is BLAST PROOF. 7/8 Litres of fuel replaces a 120kg gas bottle which make the fire hazard and explosion hazards of the petrol over gas obvious.

The Petromax cutting system does not require the use of back flash arrestors like on the gas systems to prevent fires and explosions as the petrol system uses a liquid as opposed to gas. It is scientifically impossible for a spark to travel in a liquid. The productivity advantages of the petrol system over gas are as follows: The petrol system does not require the pre-heating of steel to cut. Unlike gas that requires long periods of pre-heating on thick steel before the actual cutting can take place the petrol system will cut steel from 3mm to 300mm by hand with little or no pre-heating. This results in more savings to the customer as he uses less gas and oxygen to perform the task. This also provides a huge time saving on projects to the customer. Acetylene is normally restricted to 180mm thickness cutting as opposed to the 300mm of the petrol system. Our system thus provides a true industrial system that is hand held and safe to use. The system provides many advantages to a large spectrum of potential clients due to its lightweight. The Petromax system weighs only 12kg for 8 hours production as opposed to the 120kg gas bottles. The transport of gas is expensive as large trucks have to be used. This makes it especially difficult for clients in outlying areas and construction companies. In contrast a 210 litre fuel drum provides the equivalent of almost 30 gas bottles weighing 3600kg! This has obvious advantages for the client when he has to consider safety and storage of flammable liquids/gas.

PETROMAX AGENCY OFFER.

PACKAGE PRICE: R 15,000 PLUS VAT. PACKAGE INCLUDES: 1X 300MM CUTTING TORCH SYSTEM. ( demo system). 1X 100MM CUTTING TORCH SYSTEM (stock item) 1X EXTRA 300MM NOZZLE SET 1X EXTRA 100MM NOZZLE SET 2X SERVICE KITS Package does not include oxygen bottle. RETAIL VALUE OF THE ABOVE STOCK R 9 710.00 EXLUDING VAT. The above excludes the demonstration torch with retail value of R7995.00. TRAINING CERTIFICATE OPTIONAL: ONE WEEK CUTTING TORCH TRAINING WITH A RECOGNISED CERTIFICATE RECOGNISED BY SA GOVERNMENT. R 5000.00 EXCLUSIVE AREA BASED ON PRODUCTION MARKETING PACKAGE: 100 BUSINESS CARDS 2X BRANDED DOOR MAGNET FOR BUSINESS CAR FREE AGENCY LISTING ON PETROMAX WEBSITE SALES FILE SALES TRAINING AND FREE DEMONSTRATIONS IN THE FIELD.